You’ve just purchased the home of your dreams, signed the contract and packed the moving van and you’re all set, right? Not if you haven’t sold your current dwelling first. So you place it on the market and you wait. And wait. And wait. Purchasers come along, but they don’t have sufficient money saved up for a deposit, or their credit rating isn’t good enough. How will you ever sell this property?
For some, the rent-to-own property may be the best option. Also named a lease-to-own house, the process works similar to a automobile lease: Renters pay a certain sum each month to live in the house, and at the end of a set point generally inside three years they have the option to buy the house. Every month of rent they pay is income for the seller, while a part of it goes toward a down payment on eventually buying the property.
Both renters and sellers want to be very clear about the contract they mark up before they agree to this arrangement. Renting to own has rewards and disadvantages for both parties. Sellers who have already purchased a new home will have relief from paying two mortgage payments at once, and in a slow housing market with many houses for sale, this may be their greatest option. Buyers who can’t yet afford a house may be able to buy one more quickly.
Visit www.DIYRentToBuyHouses.com.au to read how Dallas & Kerrie Kelso can show anyone how to setup their own Rent To Own deal without involving the expensive Rent To Own Investor middleman.